Economic Diversification Act

Economic Diversification Act - Title I: Defense Economic Diversification-Adjustment Council - Establishes in the Executive Office of the President the Defense Economic Diversification-Adjustment Council (Council) in the interest of: (1) assisting affected persons in defense-dependent communities to make plans for nondefense economic alternatives to minimize dislocation in the event of a closure of a military installation or cancellation of a major defense contract; (2) providing incentives for business, industry, and the vocational education community to develop programs to retrain workers affected by such closures or terminations; and (3) notifying communities in advance of anticipated events that will require economic adjustments to nondefense alternatives.

Directs the Council, among other things, to: (1) establish within the Executive Office of the President an Office of Economic Diversification-Adjustment to provide staff support for its work; (2) disseminate pertinent information to the appropriate Federal, State, and local authorities and to diversification-alternative use committees; (3) develop and coordinate data relating to defense economic diversification and adjustments; (4) serve as a resource for civilian job information for workers displaced from defense-related employment; (5) prepare and distribute a Diversification and Conversion Guidelines Handbook in accordance with prescribed content specifications outlined in this Act; and (6) make available for appropriate use information with respect to funds that could be used for diversification and conversion planning.

Directs the Secretary of Defense to: (1) notify the Council one year in advance of any pending or proposed change in defense spending that would affect employment in the defense industry; and (2) furnish annually to the Council data with respect to future defense spending levels and contract progress.

Title II: Community Economic Diversification - Adjustment Program - Directs the Council to establish a grant program to provide funds to be used for: (1) planning for economic diversification or conversion to avoid substantial dislocations; or (2) economic adjustment, in certain cases. Permits the awarding of grants to: (1) any community that is in the process of reducing a heavy dependency on defense-oriented activities or that is substantially affected by the reduction or elimination of Federal defense facilities or curtailment of defense contracts; (2) labor unions, business representatives, and private nonprofit economic development, job training, or education agencies located near or within such communities; and (3) the base management and civilian employees of a Federal military installation being closed or realigned.

Directs the Council to establish grant eligibility criteria that will ensure assistance to the most vulnerable communities. Limits a community to a single grant for each major defense contract cancellation or military installation realignment.

Instructs the Council to publish semiannually a listing of the currently eligible local government units. Permits any community not on such a listing to petition for inclusion.

Requires every grantee to establish a diversification-alternative use committee to: (1) develop and review plans for the economic diversification of the defense-dependent area and for the alternative use of a major defense facility for other activity in the event of a Government decision affecting its continued role in defense; (2) review the industry-education partnership for training and retraining in defense-dependent areas and evaluate the particular manpower, environmental, and economic needs of the particular community; and (3) ensure that proper education and assistance are provided to employees displaced by defense-related facility closings.

Sets forth criteria with respect to the contents of diversification and alternative use plans.

Title III: Industry-Education Partnership - Amends the Carl D. Perkins Vocational Education Act to establish a program of grants to the States to carry out industry-education partnership vocational education programs designed to train and retrain workers in defense-related facilities or defense-dependent communities to allow them to find nondefense-related employment. Sets forth general guidelines for such grant program.

Authorizes the use of grant funds for: (1) necessary administrative costs; (2) the training and retraining of instructional and guidance personnel; and (3) curriculum development and acquisition.

Title IV: Miscellaneous - Authorizes FY 1988 through 1990 appropriations.